David James will remain at Portsmouth after Stoke City pulled out of a loan deal. Photograph: Lee Smith/Action Images

Stoke City have ended their interest in the Portsmouth goalkeeper David James, the club have confirmed. Stoke's manager, Tony Pulis, said yesterday he was keen on bringing the goalkeeper to the Britannia Stadium on loan until the end of the season.

They had set a deadline for completing the deal of midday today, however, so that James would be available for tomorrow's game against Liverpool at the Britannia Stadium. Once that had passed, they immediately withdrew from the deal.

"Stoke City have confirmed that they have pulled out of a bid to sign England goalkeeper David James," read a statement on the club's website. "In confirming his interest in the experienced keeper at his pre-match press conference yesterday, manager Tony Pulis made it clear the attempt to sign James on loan was one of a number of transfer options."

It is believed that Stoke's proposed deal hinged on Portsmouth's willingness to pay a portion of James's wages, but Portsmouth's financial situation may have precluded such an agreement.

James has been named in Portsmouth's squad to play Birmingham at Fratton Park tomorrow.

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